Property Finance Trends in KZN

There has been a visible surge in property transactions countrywide across all price bands over the past 12 months. This is mainly due to the low-interest-rate environment but also as a result of unexpected buyer motivation which developed during the aftermath of Covid 19 Level 5 and 4 hard lockdown earlier last year. People were spending more time at home and scores of people now work from home on a more permanent basis as well. This has resulted in renewed interest to either become a property owner or to relocate to an area that is no longer required to be close to work or just to acquire a home that better suits changing needs. 

What has been very evident from ooba Homeloans national application stats is that First Time Homebuyers have been dominating the buyer pool with more than 50% of all loan applicants falling into this category. KZN is no different as First Time Homebuyers dominated property purchases across the province and especially in areas where pricing is aligned with their affordability. The average purchase price over the last 12 months for First Time home buyers according to ooba Homeloans in KZN was just over R1 000 000.

Many South African banks have responded positively to this increased demand by offering 100% loan finance and in some instances cost inclusive loans. This allows new buyers to purchase a property without a deposit and with assistance to pay transfer and bond registration fees, making it easier to become property owners. Applicants must be first time buyers and they must qualify for the finance in terms of the national credit act as well as comply with the respective bank credit policies in order to qualify to have costs covered.

Many young families and professionals are considering the KZN North Coast as first-time buyers and have shown interest in the slightly higher priced property than the average purchase price noted above. With many lifestyle estates and other opportunities on offer, these first-time buyers have been browsing properties up to R3 000 000 after making use of the ooba Homeloans pre-qualification tools to establish their affordability upfront.

Based on the approval of bond applications in the last 12 months facilitated by ooba Homeloans Kzn, an approval rate of 82.5% has been achieved and an average home loan interest rate of Prime less 0.09% secured. This means that more than 8 out of every 10 applicants received an approved loan at an average interest rate of 6.91% (Prime @ 7% - 0.09%).

The high approval rates and favourable rate concessions offered by banks speak of an increased appetite for lending.  The South African banks have been keen to increase their market share by competing to secure home loan business. This makes multiple bank submissions a must for all home buyers and is available from ooba Homeloans which provides property purchasers with a free home loan comparison service!

Whether you need a "Life+Style" Change, or if you are looking to downsize or upsize, or you just need a holiday home to break away from the rat race; then give me a call, WhatsApp me, send me an email - your Property Matchmaker(s) are eagerly waiting to Match you with your new HOME...

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